Is welfare a Ponzi scheme? Ctd

via Andrew Sullivan

Look at this graph which shows lifetime contributions compared with benefits. There is a full report that backs up the?graph (pdf), explaining why welfare and superannuation is broke and will continue to be broke.

I’d love to have a similar comparison done here. I suspect the graphs would be worse.

As the discussion of needed reforms proceeds, a common demand will be that future retirees get back what they have paid into the systems. But reducing these complex discussions to a debate over ?money?s worth? ignores the grim reality of the programs? finances today, as well as the fact that these programs have always transferred money between individuals ? both within, and more importantly, across generations. Our work has shown that current and near-term retirees can expect to receive benefits well above their contributions, financed by current and future workers who have little hope of realizing the same level of return on their taxes due to the economic and demographic forces that are working against them.

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